British Land in Meadowhall deal

BRITISH Land has sold a 50% stake in Sheffield’s Meadowhall Shopping Centre for £587.7m.

The UK’s second biggest property firm said the stake in the shopping mall will be sold to London & Stamford Property and its investment partner, believed to be Gulf investment fund Cavendish, in a deal that will include £170m in cash.

The deal values Meadowhall at £1.175bn.

British Land is the latest UK property firm which has sold assets in the current market downturn in a bid to reduce debt and protect dividends.

“As well as underlining the enduring appeal of our largest regional shopping centre, the transaction also has the effect of increasing our financial flexibility,” said Chris Grigg, chief executive of British Land.

Raymond Mould, non-executive chairman of London & Stamford Property, said: “Opportunities to invest in such an asset are very rare and this transaction represents an outstanding acquisition for us and our partner. We look forward to working closely together with British Land to add further value to Meadowhall.”

British Land said it will be appointed property manager to Meadowhall and will act jointly with London & Stamford as strategic advisers for the property.

The 74 acre surrounding development land, along with other ancillary sites, will remain wholly in British Land ownership, although the JV will have the option to acquire it at a later date at market value.

Meadowhall is one of only six major out-of-town shopping centres in the UK and is home to retailers including House of Fraser, Debenhams, Marks & Spencer, Next and Primark. 

Andrew Jones, executive director and head of retail at British Land, said: “This transaction reduces our exposure to our largest retail asset whilst allowing us to retain a substantial share in the future upside from long and strong cashflows.

“Meadowhall is truly a unique asset with enduring occupier appeal and in which we see great value. We look forward to delivering further value with our partners in the next few years.”